Top 5 cities with most startup funding in 2016

After an exuberant year of funding in 2015, the funding amount in startups has significantly reduced since the dawn of 2016. Today, the funding environment appears to be more measured and cautious, with investors probing deep into the sustainability and viability of a business model before shelling out money.

Indian startups raised a total of .8 billion in the first 6 months of 2016. (Pic courtsey: www.tracxn.com)

As per a recent report by startup analyses firm Tracxn, Indian startups raised a total of $1.8 billion in the first six months of 2016. In contrast, the total funding raised in the first six months of 2015 by startups in the top five cities was $2.68 billion, a billion more than this year’s figure.

Out of the top 10 funding rounds this year, six were raised by e-commerce companies, four of which were based out of Bengaluru.

Though the funding frenzy has decreased considerably this year, here’s a look at top five Indian cities which have been able to grab the most notable funding in the last six months, as per Tracxn research.

1Delhi-NCR

Total Funding
Delhi NCR has emerged as the most funded city in 2016. In the first six months of 2016, Indian startups raised a total of $1.8 billion, out of which Delhi NCR received $917 million. This was helped by the massive $250 million and $200 million funding rounds raised in February by Gurgaon-based Ibibo Group and Delhi-based Snapdeal respectively.

Number Of Deals- 155

Average Ticket Size- $5.8 million

2Bengaluru

Total Funding
Bengaluru was the second most funded city with $489 million. It bagged 96 angel and seed stage rounds in 2016. The booster for Bengaluru was BigBasket’s $150 million series D round in March this year.

Number Of Deals -129

Average Ticket Size – $3.7 million

3Mumbai

Total Funding
Mumbai got total funding of $296 million, led by $145 million investment in CarTrade in January this year, $25 million in Hugama Digital Media in April this year and $20 million in Just Buy Live.

Number Of Deals – 77

Average Ticket Size – $3.8 million

4Pune

Total Funding
Pune took the fourth spot with $59 million investment. It got total eight angel investments, nine seed round and four series A and one series B round respectively.

Number Of Deals – 24

Average Ticket Size – $2.4 million

5Hyderabad

Total Funding
Hyderabad is on the last spot with $4.6 million investment. It got four angel round and 11 seed rounds.

Number Of Deals– 17

Average Ticket Size– $0.27 million

6New Kids on the Block

While these five cities have witnessed the maximum investment, cities like Ahmedabad, Chennai and Jaipur are becoming startups hubs too. The three cities raised $34 million and accounted for 30 deals this year.

Chennai got $ 17million in funding for ten deals, followed by Jaipur with $16 million in funding for nine deals and Ahmedabad with $1million for 11 deals.